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Littlewoods to slash 3,200 jobs
Slowing consumer spending has put pressure on High Street retailers
UK retail group Littlewoods is to cut up to 3,200 jobs under plans to close 126 of its Index catalogue-based shops.
Littlewoods is also selling the remaining 33 shops in the Index estate to retail giant GUS, which will convert them into Argos stores.
Sir Frederick and Sir David Barclay bought the Liverpool-based business for £750m in 2002.
Littlewoods said the Index stores had accumulated losses of more than £100m in their 20-year history.
The latest closures follow the demise of Allders and The Gadget Shop, hit by the slowdown in consumer spending.
Heavy losses
Littlewoods said 50% its 66 stand-alone Index stores would be closed within the next six months. The rest will be sold off to GUS for £44m.
Index has made a loss in nearly every year of its 20-year history
David Simons, chairman
A further 93 Index stores located inside Littlewoods outlets will be closed, with the floor space retained by Littlewoods.
Index employs a total of 4,000 staff, and about 800 of them will be transferred to Argos, which is owned by GUS.
GUS said it planned to convert the 33 sites into Argos stores within three months of finalising the deal.
Littlewoods refused to name which stores were being shut down or sold until after staff were informed.
However, the company said at least 350 jobs at its distribution centre in Moxley, West Midlands and 170 posts at its Liverpool head office were likely to be axed.
"Index has made a loss in nearly every year of its 20-year history, and has accumulated losses of over £100m despite many attempts by different management teams to turn the business around," said chairman David Simons.
'Devastating'
Union officials said workers were shocked by news of the job losses and said the decision had come completely out of the blue.
LITTLEWOODS HISTORY
1923 - Littlewoods Pools founded by the late Sir John Moores
1937 - first Littlewoods store opened in Blackpool
1985 - first Index store opened
1995 - Index Extra launched, Littlewoods' first direct catalogue store
1999 Littlewoods Leisure sold to Rodime for £161m
2002 - LW Investments buys Littlewoods from the Moores family for £750m
"Our members who have contributed to the success of this company have been left reeling and utterly shocked by this devastating news," said John Gorle, of shopworkers' union Usdaw.
Usdaw said it would urge Littlewoods to redeploy as many staff as possible into other parts of the group.
Now the Index sites are facing closure, speculation is mounting that the Barclay brothers are also poised to sell the 119-strong Littlewoods stores chain, with discount clothing retailer Primark tipped as a potential bidder.
Littlewoods to slash 3,200 jobs
Slowing consumer spending has put pressure on High Street retailers
UK retail group Littlewoods is to cut up to 3,200 jobs under plans to close 126 of its Index catalogue-based shops.
Littlewoods is also selling the remaining 33 shops in the Index estate to retail giant GUS, which will convert them into Argos stores.
Sir Frederick and Sir David Barclay bought the Liverpool-based business for £750m in 2002.
Littlewoods said the Index stores had accumulated losses of more than £100m in their 20-year history.
The latest closures follow the demise of Allders and The Gadget Shop, hit by the slowdown in consumer spending.
Heavy losses
Littlewoods said 50% its 66 stand-alone Index stores would be closed within the next six months. The rest will be sold off to GUS for £44m.
Index has made a loss in nearly every year of its 20-year history
David Simons, chairman
A further 93 Index stores located inside Littlewoods outlets will be closed, with the floor space retained by Littlewoods.
Index employs a total of 4,000 staff, and about 800 of them will be transferred to Argos, which is owned by GUS.
GUS said it planned to convert the 33 sites into Argos stores within three months of finalising the deal.
Littlewoods refused to name which stores were being shut down or sold until after staff were informed.
However, the company said at least 350 jobs at its distribution centre in Moxley, West Midlands and 170 posts at its Liverpool head office were likely to be axed.
"Index has made a loss in nearly every year of its 20-year history, and has accumulated losses of over £100m despite many attempts by different management teams to turn the business around," said chairman David Simons.
'Devastating'
Union officials said workers were shocked by news of the job losses and said the decision had come completely out of the blue.
LITTLEWOODS HISTORY
1923 - Littlewoods Pools founded by the late Sir John Moores
1937 - first Littlewoods store opened in Blackpool
1985 - first Index store opened
1995 - Index Extra launched, Littlewoods' first direct catalogue store
1999 Littlewoods Leisure sold to Rodime for £161m
2002 - LW Investments buys Littlewoods from the Moores family for £750m
"Our members who have contributed to the success of this company have been left reeling and utterly shocked by this devastating news," said John Gorle, of shopworkers' union Usdaw.
Usdaw said it would urge Littlewoods to redeploy as many staff as possible into other parts of the group.
Now the Index sites are facing closure, speculation is mounting that the Barclay brothers are also poised to sell the 119-strong Littlewoods stores chain, with discount clothing retailer Primark tipped as a potential bidder.
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